For the past 10 years, the For Love or MoneyTM research has been tracking Australian loyalty program members’ view on which loyalty programs are ‘doing a very good job’.
In 2023, the For Love or MoneyTM research moved on from this benchmark, to provide more useful insights on how loyalty programs can improve.
Introducing The Loyalty Program Experience Index SPVx
A new metric has been formulated to understand the members’ point of view of their experience with a loyalty program.
The Loyalty Program Experience Index SPVx is a rating of a loyalty program by its members based on their experience with the program weighted against three key variables of how Simple (S), Personal (P) and Valuable (V) the program is to them.
How Simple a program is to interact with - Simple to understand, easy to join; easy to identify as a member; easy to earn and redeem rewards
How Personal the program is to members - The communications are personalised, the rewards are relevant and members feel special
How Valuable a program is to members - The rewards are meaningful, desirable and valuable to members
How are the definitions of Simple, Personal and Valuable formed?
Since 2013, the For Love or MoneyTM research has been studying loyalty programs from the members’ point of view.
In those research studies we identified multiple dimensions of how members engage with programs and what’s important to them.
How simple a program is, how personal it is and how valuable it is to members are key variables we have identified to optimise the loyalty program experience.
Based on these learnings, we created a standard and simple definition of each of the three variables for members of programs to assess their memberships on these variables.
Why are the three variables of Simple, Personal and Valuable selected as the basis of The Loyalty Program Experience Index SPVx ?
Based on our 16 years of experience with designing and deploying loyalty programs of all types and structures, we identified the overall program experience was optimised by three key variables - how simple, personal and valuable programs are to members.
These three variables are key to loyalty program engagement and success.
NOTE: While there are deeper layers behind each of these three variables, we have been researching these three variables in the For Love or MoneyTM research studies and have now integrated these into a loyalty program Experience Index SPVx, based on the members’ point of view.
68 Australian loyalty programs were scored with a Loyalty Program Experience Index SPVx
In For Love or MoneyTM 2023, 68 Australian loyalty programs were scored by members based on the three key variables for optimising the loyalty program experience to calculate the Loyalty Program Experience Index SPVx.
The report provides more details on the four steps to calculating the Loyalty Program Experience Index SPVx.
Have a happy loyalty day!